Dawson, L. Self Affirmation, Freedom and Rationality: Theoretically Elaborating 'Active' Conversions, Journal for Scientific Study of Religion, 29, 2, 1990, pp. 141-63. Downton, J.V. Rebel Leadership: Commitment and Charisma in Revolutionary Process, New York, Free Press, 1973. Dugger, W.M. Economics: One Perspective, Review of Social Economy, December, 1977. Etzioni, A. Dual Leadership on Complex Organizations, American Sociological Review, 30, 1965, pp. 688-98. An important project for Social Economics is to explain phenomena which are unintelligible within framework of theory built up from neoclassical first principles of rationality. Leadership represents an example of this type of phenomenon. Despite fact that leadership has received considerable attention from other disciplines and has been found by researchers such as Avolio and Bass (1987) and Yukl and Von Fleet (1982) to make a significant contribution to worker productivity and organizational performance, this phenomenon has received scant attention from economists. An exception in this regard is Casson (1991), who demonstrates how leadership can reduce transactions costs of pairwise trading encounters and may therefore be a significant factor in pushing back limits to growth described by Hirsch (1977). The purpose of this paper is somewhat different. Its aim is to construct a theory of leadership on theoretical foundations laid by economists such as Hirschman (1982), Scitovsky (1976) and Boulding (1956, 1989), all of whom have rejected economic man as a limited and artificial construct and have tried to incorporate other dimensions of rationality into their analysis of individual and group behavior. It is thereby hoped that theory which is developed will complement rather than compete with extensive literature on this topic in philosophy, psychology, sociology, management, politics and anthropology. This literature has generated a wide range of definitions of leadership. It is, therefore, necessary to now examine those definitions which will be relevant to theory of leadership presented in this paper. I. Definitions of Leadership Writers on leadership typically point to wide range of definitions of this phenomenon and proceed to examine a sample of them. However, as Bryman points out, problem is that there is no consensually agreed one. Nevertheless, this writer does suggest that there is a fair degree of concordance concerning nature of leadership in literature which focuses on study of leadership in organizations. He proposes that the common elements in these definitions imply that leadership involves a social influence process in which a person steers members of a group towards a goal (Bryman, 1986, p. 2). As an influence process leadership integrates purposes of leaders and followers into a symbiotic mutually interdependent relationship. It, therefore, constitutes type of integrative relationship which Boulding (1989) distinguished from threat and exchange as a category of social relationship and source of power. This paper will use concept of a to describe common pursuit which binds both leaders and followers together in this type of integrative relationship. It is characteristic of leaders that they invite followers to join them on a particular quest. The appeal of a often lies in significance of contribution it can make both to a follower's own life and to communities within which this life is imbedded. However, as MacIntyre has argued, this contribution may only become apparent during course of although without some at least partly determinate conception of final telos, there could not be any beginning to quest (1981, p. 219). Although leaders and followers are bound together by a common quest, leader is distinct from his(1) followers in that he takes initiative in making leader-led connection (Burns, 1978, p. …
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